Clients Not Paying

[jujubee]

My current client (which has been good in the past) said she couldnt cut a check for deposit right away (1/3 total amount) but could do full amount in two-weeks as that's when their company cuts checks.

Needing money and wanting to make a big client happy, I had to say that 'that was ok.' Now it's nearly two months later - what am I supposed to do? I don't want to lose a big client. I'm also not in a position to pick and choose from work. I've been calling and sending emails. I feel like a nag but it's tough for a little person to survive otherwise.

It's easy to say 'don't work with them' but I'd be completely broke otherwise. And a watermark probably wouldn't have gone over very well. Anyone have any idea what else to do in that situation?

[gilpo]

Some states allow you to go before a judge with your evidence and place a lien on someone's property for the amount they owe. This is especially effective in the case of a builder since they can't sell the property until the lien is resolved.

You could also turn them over to a collection agency. Give their credit score a kick in the pants. Sometimes a letter threatening to turn them over to collections will get them to act.

[jujubee]

Well, I'd rather keep a client that pays late than ruin potential future work with them as it's one of my biggest/highest paying customers. It's like a high-wire balancing act.

[Dynedain]

Well, I'd rather keep a client that pays late than ruin potential future work with them as it's one of my biggest/highest paying customers. It's like a high-wire balancing act.

Well then you've made the decision that bending over backwards for the client is more important than the client paying you, and that's something you'll have to live with.


Normally, if you are up front with clients and are consistent with your procedures and expectations, they will respect and honor them. If you tell them, no, you can't start work until paid, or that work will go on hold until payment is made, then they'll be damn quick about making the payment if it's important. If you bend over backwards for them, they'll always expect you to bend over. And watermark everything but the final image. Otherwise what's to stop them from using an image and not paying you what's due.

Grow a backbone. If you want to do business, learn to run your work as a business. And for the guy who said don't do contracts... that's dead wrong.



Read these articles from the bottom up:
http://cgarchitect.com/upclose/DW/default.asp

[mcvltd]

jujubee - ahh, I know how you feel. If they are a 'repeat' customer then all is not lost. When they call you up next for something to be done just say that they will have to settle any outstanding debt BEFORE you start work on anything else..... and make sure you don't start untill the money comes through. It worked for me.

As for contracts.... well... I know a guy who swears by contracts but still got done over. He lost about 15k. The contract didn't stop that from happening.

[Sawyer]

A contract will clear up confusion. It lets your client know how much to expect to be paid and in what time frame. It is the parameters of a job spelled out with as much detail as you feel you need.
It wont stop someone from not paying you. It will remove the excuse of "We didn't know it would cost THAT much".

Have you talked with the client? Do they know you are unhappy?

[mcvltd]

[quote="Sawyer"]A contract will clear up confusion. It lets your client know how much to expect to be paid and in what time frame. It is the parameters of a job spelled out with as much detail as you feel you need.
It wont stop someone from not paying you. It will remove the excuse of "We didn't know it would cost THAT much".quote]


Excellently explained!

[jujubee]

I have contracts in place with very specific terms. No matter what the differences in situation, some high paying clients are late consistently, change their minds on design, not providing all the details at project start, etc. It's not anything I am doing wrong - the terms are very clear. If I was shorted for a very extended period of time (I think about 5-6 months,) I would threaten legal action. But for the most part, a contract is a must. But, there's just no guarantee that the client follows the terms exactly. The contract there is for information and legal recourse.

And yes, I do have a backbone (I take offense to that statement) - I can be stern when necessary, but that doesn't always work. I'm also a very nice guy, but I wouldn't hesitate to give someone flat tires if pushed the wrong way.

I guess the question is - how flexible should one be? If someone pays you $100,000 to build a mall, do you complain to them if it's 2 months late?

[arobbert]

http://smallbusiness.dnb.com/collect...e-products.asp
This doesn't cost very much and someone else can be the hard ass.

These guys are little more intimidating because of their association with D&B.

[arobbert]

I've heard there are companies that do this as standard practice they move from vendor to vendor exhausting their credit and only pay the squeaky wheels when necessary.

If it's a big project for a new customer I ask for a percentage up front like 30% with an additional 30% part way through and specify that I will provide the final product when I receive payment in full. We are not big corporations that can afford to extend credit like other suppliers.

[gilicom]

I guess the question is - how flexible should one be? If someone pays you $100,000 to build a mall, do you complain to them if it's 2 months late?

would be intersting to see what kind of project cost that much , is it just visualization or also design?

[jujubee]

$5,000, $10,000, $25,000, $50,000, or $100,000 - it's the point I'm trying to make. It's all relative to expenses, time involved, complexity, people hired, equipment, software, where you live (Egypt or NYC), etc. Does it have 10 minutes worth of flythrough animations, 140 condominium units with pools and a city in the background? A website and marketing brochures? Do you have 4 people you are paying and taxes as well? Things can add up - but no matter what, you have to cover your own costs.

And no, personally I haven't had one at 100 but I've known people to go over that - even over 400.

My latest situation was a good/repeat client that said, 'we cannot process the retainer at the moment (1/3), but when we cut checks in two weeks we can pay you the full amount. Is that okay with you?'

And what was I supposed to say - No? We needed the work. Unfortunately, I waited two months. I ended up just calling their accounting department directly yesterday, complained, and they said they would courier a check over today.

[jow]

Good to here you've got it sorted (nearly!).
I have a similar thing with one of my clients, a tad slow on paying (90% of the time), which usually ends up me calling the accounts Dep.
Alot of its down to the date I invoice them, they have a cut-off date for invoices to be in so as you get paid that month.
Usually this date has a nasty habit of changing from month to month!.. Which then means my invoice gets forgotten about...

[dellis]

Its always an interesting debate...mostly i think becasue we all want/need the work/money. The funny thing is that if you inversed the situation it just would not fly at all. Imagine you give them there images/animations 2 months after their deadline when they agreed that you could be a week late. Wouldn;t happened....they wold be climbing all over you ass through email/phone/ lawyers or whatever. I got burned once and after really thinking about what happened i came to believe it was how i conducted myself. I let them feel/know that i needed them more then they needed me. Once they know that they will take advantage of it...especially if there is little or no opposition. My last email to my client was that all further communication would be with my lawyer....i had my checque the next day.

[jujubee]

I should add -my first client was late to me by six months on $600!

I complained and was really angry, but still remained professional. A year later, I had two more substantially larger projects from him (with a new firm) all of which was paid on time. Sometimes it doesn't pay to burn your bridges.